"Given the sluggish global economy, continued weakness in global capital markets and substantial regulatory changes in 2002-2003, we are pleased that our revenue figures held up so well," said Samuel A. DiPiazza, Jr., CEO of PricewaterhouseCoopers International Limited. "While Sarbanes-Oxley and other regulatory developments did lead to increases in audit fees as the scope of audit work expanded, these increases were largely offset by reductions in non-audit work resulting from regulatory restrictions and attendant client uncertainty. The prediction that new regulations would create a bonanza for accountants has clearly not been the case."

"With economic conditions improving and our businesses firmly focused on core priorities, we expect to show significant real growth in fiscal 2004," said Mr. DiPiazza, "exceeding client expectations with a broad and robust range of assurance, tax and advisory services that inspire trust and confidence through superior quality and connected thinking."

In Europe, revenues were primarily affected by difficult economic conditions; in South and Central America by exchange rate devaluations and the state of the economies in the region. Growth in Asia, despite the impact of SARS, reflected robust performance in China in addition to a local Andersen merger, the only Andersen merger with a PricewaterhouseCoopers member firm.